Bank of England mulls deposit-like protection for stablecoins

The Bank of England is considering measures to protect stablecoins in a manner similar to commercial bank deposits, Bloomberg reported. Deputy Governor Dave Ramsden stated that maintaining long-term trust in stablecoins may require mechanisms analogous to depositor insurance schemes. He added that legal procedures designating stablecoin holders as priority creditors in the event of a bankruptcy could also be necessary. Ramsden noted that the bank is currently reviewing what actions are needed to prepare for the potential failure of systemically important stablecoins.